Collision course: The recommendations of Lib Dem Peer Lord Carlile will not please Home Secretary Theresa May

The Government's anti-terror law watchdog risked controversy tonight by calling for reduced jail terms for fanatics who co-operate with police investigations.

Lord Carlile said the prevention of further atrocities was more important than the length of time a terrorist spends behind bars.

The Lib Dem Peer also put himself on a collision course with the coalition government by opposing their plans to scrap control orders, and halve the 28-day limit for holding terror suspects without charge.

Lord Carlile, who has access to sensitive security papers, said he believed they were needed to protect the country from attack.

On plea bargaining, Lord Carlile suggested terrorists who gave information about further plots could be treated in the same way as other so-called grasses, and have their sentence slashed.

In his annual report to government, he wrote: 'Defendants in UK terrorism trials continue to show a willingness to plead guilty in the face of a solid prosecution case and a realistic approach to pleas by prosecutors and judges.

'Plea agreements, and the obtaining from defendants of information useful in preventing and detecting terrorism, should be encouraged – in some cases by substantial discounts from sentences that otherwise would be served.

'The prevention and detection of terrorism offences are more important than the length of prison sentences, though it is right that terrorists should expect very long sentences especially if they have denied what has been proved against them.'

Earlier this month, Home Secretary Theresa May announced a review of the Labour Government's most illiberal anti-terror laws.

These included control orders which place suspects under virtual house arrest, and the power to hold suspects for four weeks without charge.

The Lib Dems want both to be axed.

But Lord Carlile wrote: 'It has been suggested that the 28 days provision should not be renewed, and the limit returned to 14 days. I do not favour this: in my view it could place national security in jeopardy.

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He added: 'Nothing I have seen or heard during or following the election campaign has led me to change my repeatedly expressed views – that control orders are an unwelcome but appropriate means of addressing a small number of cases.'

Mrs May said she would consider his views as part of the review of terrorism legislation.

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Lord Carlile said there was a continuing grave threat of terrorism from overseas.

He wrote: 'There is increasing evidence of terrorism being planned on a wider international front than before.

'Somalia and Bangladesh are worrying examples of countries in relation to which UK resident participants may be preparing acts of terrorism, and from which terrorism against the UK and UK assets may emerge.'

Lord Carlile also warned the ongoing police investigation into allegations the security services were complicit in torture were putting pressure on agents, who thought it was taking a long time.

He said dissident Republicans in Ireland could renew their campaign against the British mainland.

Lord Carlile also called for more foreign terror suspects to be returned to their home countries because of the threat they face to national security.

He said it was 'not acceptable' that 'large numbers' of dangerous overseas citizens were evading deportation on human rights grounds when their presence in Britain was placing the public in danger.